The 5 Most Common Newbie Mistakes in Property Investment (And How to Avoid Them)

I've been investing in property since 2012, and in recent years, I have been mentoring new UK property investors, and time after time, the same mistakes come up. If you're new to Buy-to-Let or just getting serious about your first investment, here are 5 common pitfalls I see and how to sidestep them.

1. Getting Obsessed with Capital Growth Too Early
   

It’s easy to fall for the “growth city” hype. But if your deal doesn’t stack up from day one with solid cash flow, you’re speculating - not investing. Focus first on income-producing assets. Long-term growth is a bonus, not the foundation. Having said this, I also make sure to invest in areas where there are good indications of future growth potential, such as local government investment and large employers.

2. Underestimating Refurb Costs (By a Mile)

Refurbs nearly always cost more and take longer than expected. If you’ve never managed a refurb before, triple-check your numbers (by talking to someone who has!) and add a contingency. Get at least three quotes and walk through with a builder or experienced investor before committing.

3. Rushing Into Areas You Don’t Understand

Buying in a cheap Northern town might seem smart, especially on paper, until you realise the local letting agents won’t touch your property or your tenants are high risk. Spend time in the area, talk to local agents, and look for areas with demand drivers (hospitals, universities, transport, employers).

4. Relying Too Heavily on Estate Agents for Deals

If Rightmove is your only source of leads, you’ll often end up in bidding wars or overpaying. Most good BRR deals aren’t listed for long, if at all. It is work; you have to put in the effort to reap the rewards. The best deals come to those who love the hunt and get stuck in! I bloody love a good negotiation with a vendor. Build relationships with agents, but also explore direct-to-vendor methods, drive-for-deals, letters, networking, auctions etc etc.

5. Trying to DIY Everything (and Burning Out)

This is a big one. You can learn everything yourself… but you’ll make costly mistakes along the way. A few hours with the right investing pal or mentor can literally save you tens of thousands. Know your limits. Build a trusted power team and get guidance when needed, especially with finance, legals, and refurbs.

Property isn’t rocket science, but it is a business – especially in this environment and with the rental reforms coming in. The more you treat it like one from the beginning, the faster you’ll learn and the less expensive your lessons will be.

What’s a mistake you made early on? Or something you’re worried about as a newbie? Drop a comment below 👇 Always happy to help where I can.